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Legislative Council - Fifty-Fourth Parliament, First Session (54-1)
2018-11-06 Daily Xml
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Land Tax

The Hon. J.A. DARLEY (15:05): I seek leave to make a brief explanation before asking the Treasurer a question about land tax.

Leave granted.

The Hon. J.A. DARLEY: In the budget this year it was advised that land tax relief will be provided as of 1 July 2020, with the tax-free threshold increasing from $369,000 to $450,000 and the top rate of land tax being reduced from 3.7 per cent to 2.9 per cent, resulting in a reduction in total land tax receipts of approximately $20 million. Can the minister advise of any reason or reasons why the estimated land tax receipts in the following financial year 2021-22 are likely to rise by $17 million?

The Hon. R.I. LUCAS (Treasurer) (15:06): I am happy to take the question on notice but I suspect the answer is that as a result of valuation increases which are being initiated by the Valuer-General under a program—partially, I should say, under a program initiated by the former government in terms of the revaluation initiative. I suspect that is in large part what is driving the potential increases in land tax, even though there will be a significant reduction in the rate of land tax that is being levied by the government at that particular top rate from 2020 onwards.

I am happy to take the question and bring back a more detailed response but I think the simple response is that clearly the government's actions in the budget will lead to a reduced collection of land tax but if, at the same time, overall valuations are increasing or a significant number of those valuations are increasing, then even the reduced land tax regime that the government has announced will lead to increases in revenue from the mere fact of the impact of that particular initiative on valuations across the state.

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